Skip to main contentdfsdf

    • But every hour and every dollar that the company spends developing autopilot technology is an hour and a dollar that it’s not spending on battery technology, which is its core strength.
      • No - First, Tesla doesn't do battery technology all by themselves. Their current Model S (and presumably also the Model X) use Panasonic battery technology. That makes battery tech R&D time/cost mostly an issue for that supplier.

        Secondly, Elon Musk doesn't do all this stuff by himself. He is very brilliant, but Tesla also employs scores of brilliant engineers. Like in many companies, engineers can rotate through different projects. There are also multiple engineering teams that are working on different projects at the same time. Autopilot engineers aren't going to be slowing down the engineers who are working on the more affordable Model E.

    • On top of that, any time and money the company spends on autopilot technology will have to be recouped in profits down the line
      • Yes, but that doesn't have to make the time/cost a conflict with the Model E. Tesla Autopilot is probably just an extra cost option for Model S/X purchasers.

        Secondly, there isn't necessarily a "time limit" on how fast Tesla has to recoup the R&D cost of autopilot. The development/fixed costs of autopilot can be averaged out over many years over many models.

        It's also key not to confuse 'fixed' costs with 'marginal' costs. The inability to make an affordable electric car is almost entirely due to the price of the battery pack (which is manufactured by Panasonic for Tesla).

1 - 1 of 1
20 items/page
List Comments (0)